Quintis (ASX: QIN, ‘the company’) advises that an assessment of its Queensland Indian Sandalwood plantations has revealed only minor and short term damage from Cyclone Debbie.
Most importantly there were no safety issues in regards to Quintis’s people or any damage to infrastructure, which is located in the Burdekin area of Queensland.
Approximately 12% per cent of Quintis’s plantations are in Queensland.
An assessment by the Company’s foresters has indicated that the 2012, 2013, 2014 and 2016 plantings sustained very little damage. Some of the larger host trees near the edges in the older plantations (2012 and 2013) did break off due to their large sail area and exposure to the wind. The Company foresters advise that as there are large numbers of host trees in these plantations, the percentage of trees affected is small so will not impact on heartwood yield from the associated Indian Sandalwood trees at harvest. These host trees will regrow in time also.
Some Indian Sandalwood trees in the 2015 plantings have become “lodged” (leaning over), this can occur in two-year-old age groups and can be rectified with refined pruning methods. This method has been successful with other plantations suffering storm damage in the past and is the preferred method to resurrect the toppled trees.
An independent assessment for any potential insurance claim (if any) will be conducted as required.
Diversifying the geographic location of plantations has been an important business strategy for Quintis in recent years so that any impacts on plantation growth are localised and therefore the impact on the broader asset base is minimised.